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In reference to FMRD Master Direction No. 1/2016-17 – Master Direction

Risk Management and Inter-Bank Dealings and the Prudential Normson Capital Adequacy Directions,2025 applicable to the different Regulated Entities (REs) which inter alia specify the methodology for computation of Net Open Position and calculation of capital charge on foreign exchange risk. Reserve Bank has released the following draft Amendment Directions which modify the aforementioned instructions.

1. Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
2. Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
3. Reserve Bank of India (Regional Rural Banks – Prudential Norms on Capital Adequacy) Amendment Directions, 2026
4. Reserve Bank of India (Local Area Banks – Prudential Norms on Capital Adequacy) Amendment Directions, 2026
5. Reserve Bank of India (Urban Co-operative Banks – Prudential Norms on Capital Adequacy) Amendment Directions, 2026
6. Reserve Bank of India (Rural Co-operative Banks – Prudential Norms on Capital Adequacy) Amendment Directions, 2026
7. Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026
8. Reserve Bank of India (Standalone Primary Dealers) Amendment Directions, 2026
   The comments on the draft Amendment Directions are invited from the Regulated Entities, market participants, and other interested parties till February 3, 2026. The comments / feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website or may alternatively be forwarded to The Chief General Manager Market Risk Group Or by email With the subject line ‘Feedback on Net Open Position – Revised Instructions’.